CIPARs Program (Collateralized Intellectual Property Appreciation Rights)
A CIPAR is a structured investment in an intellectual property portfolio which has a clear path to commercialization, and is not generating current cash flow. From the investor’s perspective, the instrument generates a return consistent with a private equity investment while providing current income to the investor. The instrument is collateralized by the organization’s intellectual property portfolio and is based on a low loan to intrinsic value. Therefore even if the issuer does not perform, the over-collateralization of the loan along with some other mechanisms, protects the investors capital.